Press Metal’s 25% acquisition of BAI to cut third-party alumina feedstock needs

Press Metal, the largest aluminium producer in Southeast Asia, has finalized a shareholder agreement with Bintan Alumina Indonesia (BAI) for 25% of the company, which will allow the former to “secure a long-term supply of alumina.”

Press Metal has invested 3.07 billion yuan ($437.03 million) in BAI, with the funding going toward a second phase of the Indonesia-based alumina project to double capacity to 2 million tonnes per year, according to Shandong Nanshan Aluminium Co – another shareholder in the project. Other direct and indirect shareholders of BAI are Redstone Alumina International Pte and PT Mahkota Karya Utama.

The aluminium producer, based in Malaysia, has smelting capacity of 760,000 tpy and extrusion capacity of 190,000 tpy. The shareholder agreement, completed on November 15, will supply the smelter with 70% of its alumina feedstock needs once the alumina project is fully operational. The volume supplied was estimated at...

Published

Hui Li

November 21, 2019

11:48 GMT

Shanghai